ADDITIONAL FUNDING
ANNUAL FUNDING
BUDGET
CHECK REQUEST
CITY CHECK
COMMERCIAL PREPAID CARD
CONTACT INFORMATION
CONTRIBUTIONS
COUNCIL BOARD MEMBER
DEMAND WARRANT
DONATIONS
EQUIPMENT LEASE
FISCAL YEAR
FUNDING USE
JOINING CHAMBER OF COMMERCE OR OTHER ORGANIZATION
NON PROFIT STATUS
NOTIFICATION PROCESS
OFFICE DEPOT
OFFICE SPACE
OUTREACH ITEMS
PERSONAL SERVICE CONTRACTS
PETTY CASH
PRIVATE SCHOOL IMPROVEMENTS
PRIVATELY-OWNED PROPERTY IMPROVEMENTS
PURCHASING
RECONCILIATION
REIMBURSEMENTS
ROLL-OVER
STAFFING/PERSONNEL
TOYS
TREASURER
T-SHIRTS
UPLOAD

ADDITIONAL FUNDING

See ANNUAL FUNDING

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ANNUAL FUNDING

How much can we receive?

Upon enrollment in the Funding Program, your Neighborhood Council will be eligible to receive up to $50,000 per fiscal year, which gets deposited into one city account. After that treasurers can ask for city checks to be issued to vendors (“demand warrants”), or payments to be issued to other departments (“transfers”), or for uploads to the Bank of America commercial prepaid card.

Your initial funding period will commence the quarter of the fiscal year in which the Neighborhood Council is enrolled.

(Revised: 02/09/06)

Do we have to request $ 50,000 per year?

No. If through the budgeting process your Neighborhood Council decides that you need less money, you can request that lesser amount. If funding needs change later, your Neighborhood Council will have to submit an approved request for additional funding. All requests for additional funding should be approved by your Neighborhood Council board and submitted to your Advocate.

(Revised: 02/09/06)

Can we change our Neighborhood Council funding request after it has been submitted to and approved by Department of Neighborhood Empowerment?

Any major changes should be approved by your Neighborhood Council and submitted to our department. The board may choose to delegate this authority, e.g. Executive Committee or Budget Committee.

(Revised: 02/09/06)

What if we spend our quarterly commercial prepaid card funds before the end of the quarter and need more funds?

You can submit a request for additional funds. Please note that it would be more efficient for your Neighborhood Council and our department if you submit a single request for the funds to cover the shortfall of the present quarter and the needed amount for the following quarter.

(Revised: 02/09/06)

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BUDGET

What is the purpose of the budget?

Just like any organization or a company your Neighborhood Council needs a solid annual plan to lead a successful existence. The purpose of the budget is to help your Neighborhood Council to plan in advance all activities it wants to undertake during the year and to ensure that all your spending takes place in accordance with our funding policies. If you have a well-designed budget, allocating enough funds to cover general administrative costs, activities, community improvement and outreach events, you will be on track with your Neighborhood Council’s goals.

(Revised: 02/09/06)

Should we use a calendar year or a fiscal year for our budgetary purposes?

Because the accounting for Neighborhood Council funding is aligned with the City's fiscal year, your Neighborhood Council will correspond to the July 1 – June 30 calendar. Your budget should be annualized to minimize quarterly revisions.

(Revised: 02/09/06)

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CHECK REQUEST

See DEMAND WARRANT

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CITY CHECK

What is the purpose of a City Check?

While we encourage Neighborhood Councils to use the commercial prepaid card for most of their transactions, there are some instances where a particular vendor requires a check payment. In this case this Neighborhood Council must submit a completed check request form (“Request For Neighborhood Council Paper Check – Demand Warrant”) along with original invoice, Business Tax Registration Certificate Number (BTRC), IRS Form W-9 or Employer Identification Number (EIN). Once received, we will process the request and the City Controller will arrange for the check to be issued.

City policy is to pay for goods or services that have already been received and verified by invoice.
If a Neighborhood Council requests payment for services provided by another City department (for instance Recreations and Parks), the Neighborhood Council will have to submit a demand warrant requesting funds be transferred from the Neighborhood Council’s account to the specific department.

(Revised: 02/09/06)

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COMMERCIAL PREPAID CARD

Bank of America issues a card with the VISA logo, which accesses Neighborhood Council funding for purchases (up to $1,000 per transaction) and petty cash withdrawals (once per 30-day cycle, up to $500 per transaction).

(Revised: 02/09/06)

Can we get more than one card?

The bank indicates that at this time it cannot issue more than one card per Neighborhood Council. Our department will continue to work with the bank to find a way to meet this reasonable request.

(Revised: 02/09/06)

Can I give the card to other people to use?

Yes. However, that will require agreement from your Neighborhood Council, which should develop procedures to ensure that the card is used appropriately.

(Revised: 02/09/06)

What if we want to purchase something priced at more than the $1,000, the card limit?

In this case, you would submit your request to the Funding Program using the Demand Warrant process. This will allow our department staff to work with you in determining how to best meet this request. Our goal is to get you the money that you need when you need it.

(Revised: 02/09/06)

What happens if we lose our card?

Immediately notify the Bank of America at (888) 748-3965, 24 hours a day to report a lost or stolen card. Next, notify our department’s Card Administrator (Kevin McNeely at (213) 483-1810) and provide him with a completed “City of Los Angeles Lost/Stolen Commercial Prepaid Card Notification” form (included as part of your Commercial Prepaid Card Handbook issued at the treasurer training and orientation).

(Revised: 02/09/06)

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CONTACT INFORMATION

Who do I contact if I have questions?

Should you have any questions regarding the Funding Program, you can contact:

Kevin McNeely at (213) 485-1810 or at Kevin.McNeely@lacity.org

Steve Baule at (213) 473-5383 or at Steve.Baule@lacity.org

Milena Albert at (213) 473-5115 or at Milena.Albert@latcity.org

(Revised: 02/09/06)

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CONTRIBUTIONS

What if, as part of its community improvement and outreach effort, our Neighborhood Council wants to contribute funding, or to purchase needed equipment, supplies or services, for projects or activities operated by another entity in our community, such as a school or community center or another City department?

When a Neighborhood Council votes to spend some of its City funds as an individual contribution, or as part of a cooperative improvement project involving several agencies and other sources of funds, a Demand Warrant for the amount to be contributed by the Neighborhood Council should be prepared and delivered to our department. The Demand Warrant should clearly identify the dollar amount and, if appropriate, identify the organization, agency, or City department that is partnering with your Neighborhood Council. Remember, the request must identify a specific item or service, because payment will be based on an invoice for that item or service.

In addition to the Demand Warrant request to financially assist another entity, such as a LAUSD facility, a nonprofit community center, a senior center, or a Parks and Recreation center managed by another City agency, the Neighborhood Council treasurer should submit two brief, written, very important statements:

(1) A statement from your Neighborhood Council explaining how your Neighborhood Council selected the entity, and how the expenditure of City funds will benefit the Neighborhood Council; and, (2) a statement from the entity itself, on agency letterhead, acknowledging and appreciating the Neighborhood Council’s involvement and financial assistance for the project.

This is to protect the Neighborhood Council as well as the recipient. Remember, these are public funds and there has to be a clear public benefit to the community. Also, make sure the entity or agency that you would like to help is fully aware of and supports the project or activity, thereby avoiding any confusion. This is important to remember: In addition to the invoice to be paid, these statements constitute a valuable “paper trail” should an auditor or member of the public or media inquire why the expenditure had occurred.

(Revised: 02/09/06)

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COUNCIL BOARD MEMBER

An individual who, through the process of election, has become a voting member of the Neighborhood Council governing board.

(Revised: 02/09/06)

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DEMAND WARRANT

How long it takes to process a Demand Warrant?

Processing a demand warrant normally requires 7 to 10 business days from the time the Funding Program staff receives and logs the request until the City Controller issues and mails the check, assuming all the necessary information and supporting documents have been submitted.

(Revised: 02/09/06)

What can delay processing a Demand Warrant?

There are four common situations that can result in processing delays:

1. No original invoice submitted for services or goods received and now requiring payment. An invoice must accompany the demand warrant.

2. Missing information such as the Employer Identification Number (EIN), or Social Security Number, W-9 form, and/or Business Tax Registration Certificate (BTRC) which are all required per City policies to prove that the vendor is legitimate.

3. Turning in an expired price quote for an advance payment item, which must be reviewed by City Controller staff. This can be avoided by submitting an invoice for goods or services already received to avoid requesting an advance payment, unless no other alternative exists.

4. No Neighborhood Council board-approved budget on file with the department to indicate that a spending plan was approved in a public meeting.

(Revised: 02/09/06)

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DONATIONS

Can a Neighborhood Council make a donation or grant to a local nonprofit group or event?

No. Charitable gifts or grants to groups or entities are not permitted at this time. However funds may be used to pay for specific items or services provided to your Neighborhood Council by such groups. For example, you could fund advertising or column space in a community newspaper, a table/display space at a conference or community event, or services performed by a nonprofit. Your Advocate can help you achieve your goals by repackaging your request.

(Revised: 02/09/06)

Can a Neighborhood Council accept donations?

At this time Neighborhood Councils can only receive donations that are formally accepted on its behalf by the City Council. Please contact your Advocate for more information regarding this process.
Currently, an ordinance is in the process of being finalized by the office of the City Attorney that would allow Neighborhood Councils to officially accept most donations of funds, supplies, food, etc. without the City Council’s approval. The best way to keep track of the progress of the donations ordinance is to check our home page at www.LACityNeighborhoods.com.

(Revised: 02/09/06)

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EQUIPMENT LEASE

How can Neighborhood Councils best obtain photocopiers?

Neighborhood Councils may contact the Department of General Services to take advantage of the City’s contract with Canon for lower-priced copiers. The explanation and related contact information is available on the General Services website at http://www.lacity.org/GSD/pubcopier.htm. The advantage of the City Wider Copier Program is that it is cost efficient and saves the Neighborhood Council maintenance and repair costs.

(Revised: 02/09/06)

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FISCAL YEAR

When does the Neighborhood Council’s fiscal year starts?

The Neighborhood Council’s fiscal year is aligned with the City's fiscal year (July 1 through June 30) and is divided into four quarters: July 1 - September 30; October 1 - December 31; January 1 - March 31; and April 1 - June 30.

(Revised: 02/09/06)

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FUNDING USE

See PURCHASING

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JOINING CHAMBER OF COMMERCE OR OTHER ORGANIZATION

Can a Neighborhood Council join a chamber of commerce or other such organization?

No. Under the City Charter, a Neighborhood Council is an advisory body and cannot join private organizations such as chambers of commerce. However, a Neighborhood Council can interact with private organizations in activities, such as implementing neighborhood improvement projects. Neighborhood Councils are encouraged to interact with other organizations as much as possible.

This prohibition protects the Neighborhood Council board by preventing conflict of interest issues when private organizations take positions on issues placed before the Neighborhood Council.

An individual stakeholder or board member of a Neighborhood Council is free to join any private organization.

(Rev 2/27/06)

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NON PROFIT STATUS

Can Neighborhood Councils establish 501(c)(3) nonprofit entities?

No. Neighborhood Councils are City entities and cannot become independent organizations.

Please see:

http://ens.lacity.org/done/newsletter2005/donenewsletter2005224234264_12092005.pdf

(Revised: 02/09/06)

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NOTIFICATION PROCESS

How long does it take for a notification to be e-mailed to the Neighborhood Council?

Within 48 hours of receipt, Funding Program staff will e-mail the Neighborhood Council treasurer, your Advocate, and the Senior Advocate, printed notifications of all submitted requests for checks and subsequent funding. Within an additional 48 hours, requests for additional information are also e-mailed. Once the process is completed, the staff will e-mail a notification that a check has been issued, or that additional funding uploaded to your account.

(Revised: 02/09/06)

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OFFICE DEPOT

Office Depot offers Neighborhood Councils a variety of discounts, and we encourage you to take advantage of this program.

(Revised: 02/09/06)

How do I find out about discounted pricing at Office Depot?

The best way is to be set up online. You can contact Ken Meyer, Account Manager (Office Depot Business Services Devision), at 818-557-1724 or email him at Kmeyer@OfficeDepot.com and he will set you up to access their website http://bsd.officedepot.com.

(Revised: 02/09/06)

Does this discount program work at my local Office Depot?

Although Office Depot has informed store district managers and most of the store managers, the retail clerks may not be aware of this program. The pricing and discounting is done through the commercial prepaid card link, and that is why all purchases must be completed as a credit card sale and not as a debit card sale.

(Revised: 02/09/06)

Will Office Depot deliver to us?

Yes, free delivery is available. You must first have your Neighborhood Council’s address entered into the Office Depot computer system, and then you can order online and have free next day delivery.

(Revised: 02/09/06)

What if I want to purchase items, e.g., furniture or computer equipment, priced over the $1,000.00 credit card limit?

Office Depot can invoice you on an open account basis through the Department of Neighborhood Empowerment. However, you need prior authorization from the Funding Program before we can do this.

(Revised: 02/09/06)

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OFFICE SPACE

Can we lease office space for our Neighborhood Council?

Yes! There are a variety of office space options available to match the specific needs and unique preferences of eligible Neighborhood Councils. Through the new Neighborhood Council Office and Meeting Space, Leasing and Procurement Program Neighborhood Councils may lease office space in privately owned facilities, occupy donated office space in privately owned facilities, or share space in City owned or leased facilities. This comprehensive program can found on facilitates the coordination of all processes associated with acquiring office and meeting space from obtaining premises insurance and locating donated office furniture to establishing telephone service. To participate in the program, eligible Neighborhood Councils must be certified, have an elected board, and be officially enrolled in the Neighborhood Council Funding Program. Contact Jackie Mendez to learn more about the process at (213) 485-4278, or electronically at: Jacqueline.Mendez@lacity.org.

Please visit the Department of Neighborhood Empowerment's online reference library for more office and meeting space information at: www.lacityneighborhoods.com or for more information regarding the program go to http://ens.lacity.org/done/facibulletins/donefacibulletins105023364_09212004.pdf.

(Revised: 02/09/06)

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OUTREACH ITEMS

Neighborhood Councils may purchase outreach items such as t-shirts, pens, pencils, etc. The Neighborhood Council should have its name and/or logo affixed to these items so that the item will become outreach in nature rather than a gift of public funds or donation. Outreach items can be an effective tool for advertising your Neighborhood Council. If the Neighborhood Council decides to pay for toys for an event (i.e. holiday gift drive), have the vendor affix a tag or sticker to the toy identifying your Neighborhood Council. Your advocate can help you navigate through this.

(Revised: 02/09/06)

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PERSONAL SERVICE CONTRACTS

Can we use city funding to enter into personal service contracts?

Not at this time. Proposals will be presented for City Council review and approval to allow Neighborhood Councils to enter into contracts with vendors/service providers. Such contracts will be processed through the department and the general manager. Until this process is approved, Neighborhood Councils must purchase services on a fee-for-service basis. The Neighborhood Councils board votes to purchase services and includes this item in its publicly approved budget. Once the services have been provided, the vendor/service provider will present the Neighborhood Council with an invoice for payment. Submit that invoice along with a check request (Demand Warrant form) to the Funding Program and a check will be processed to the vendor/service provider.

(Revised: 02/09/06)

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PETTY CASH

The purpose of petty cash is to cover incidental miscellaneous purchases including refreshments, postage, and council board member reimbursement for approved expenditures.

(Revised: 02/09/06)

How frequently can we take out petty cash?

Petty cash may be taken out incrementally within a 30 day cycle but the total withdrawn must not exceed $500 for that cycle.

(Revised: 03/24/08)

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PRIVATELY-OWNED PROPERTY IMPROVEMENTS

Can a Neighborhood Council spend its funds on improvements to privately-owned property?

No. Public funds cannot be used to improve a privately-owned property, thereby according the owner a benefit. It would be a gift of public funds. Such things as erecting a fence or paying to clear a privately owned property of foliage would constitute a prohibited gift of public funds.

(Revised: 03/22/06)

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PRIVATE SCHOOL IMPROVEMENTS

Can a Neighborhood Council spend its funds on equipment or improvements to private schools?

No. Public funds cannot be used to improve a privately-owned property, thereby according the owner a benefit. It would be a gift of public funds. It is presumed that privately-owned schools have their own sources of funds. Purchasing books or equipment or paying for physical improvements with Neighborhood Council funds are prohibited gifts of public funds.

(Revised: 03/22/06)

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PURCHASING

There are three options for you in making your purchases:

1. Use the commercial prepaid card, which can be used like a VISA card for purchases up to $1,000 at a time;

2. Use the check process submitted to the department for purchases over $1,000 or in cases where the card cannot be used;

3. Use petty cash (up to $500 per 30 calendar day cycle) for miscellaneous items.

(Revised: 02/09/06)

Can we purchase food with the card?

Yes, food may be purchased when it clearly supports the goal of the Neighborhood Council to encourage public participation in Neighborhood Council activities, e.g., board or committee meetings, training, community forums, neighborhood block parties designed to promote public participation, etc. Please look for the best bargain. Spend the money as if it were your own.

(Revised: 02/09/06)

What if our board meets in a restaurant?

If your council elects to have a meeting or a Neighborhood Council related function in a restaurant you can use your commercial prepaid card so long as a list of those attending and an itemized receipt are submitted with the quarterly reconciliation. A general receipt that fails to list what restaurant items were specifically paid for will not meet the City Controller's standards. In addition, if any of the council board members chose to purchase alcohol, such purchases cannot be placed on the same receipt and cannot be paid for with your commercial prepaid card.

(Revised: 02/09/06)

Can we use our money for month-to-month payments for things like Internet service, telephone bills, etc?

Yes. We encourage you to use your prepaid card for your monthly bills. It will eliminate all the steps in obtaining a city check and prevent unnecessary delay in paying your service provider.

(Revised: 02/09/06)

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RECONCILIATION

Before Neighborhood Council can receive an additional commercial prepaid card upload funding for its next quarter (normally $6,250) as well as processing further city checks, we are required to examine the receipts from the last quarter to ensure that the money has been spent properly and to reconcile all accounts. The Neighborhood Council must submit the Commercial Prepaid Card Reconciliation form and Petty Cash Reconciliation form (both forms are available on our website in PDF and Excel format) along with original receipts, invoices and other documents supporting listed projects and activities, i.e. flyers, lists of attendees, newspaper articles. After the reconciliation has been completed and both the Neighborhood Council and the department agree on the results, all documents are filed in a secured location.

(Revised: 02/09/06)

Will there be a "grace period" for submission of receipts for reconciliation?

Yes. The Funding Program wants to provide the Neighborhood Councils with maximum flexibility in accessing their funds, so a grace period of one quarter (90-calendar days) will be honored. It is expected that the Neighborhood Councils will engage in a good-faith effort to submit original receipts no more than one quarter back, and in turn the department will process a current funding request.

(Revised: 02/09/06)

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REIMBURSEMENTS

Can we use our funds to reimburse ourselves for expenses related to our Neighborhood Council?

Yes, but only in special situations. The treasurer or authorized council board member of the Neighborhood Council may be reimbursed for expenses they incurred after their Neighborhood Council has been approved for initial funding and issued commercial prepaid card. A reimbursement can only be made for expenses included in the board approved budget. All requests for reimbursements must be made through a check request and accompanied by the original receipt(s) in order to be processed. Please see Funding Information Bulletin No. 2005-01 Clarification for the Use of Board Member Reimbursements by clicking on the Funding tab on the Home Page.

However, a monthly (30 calendar day cycle) Petty Cash allowance up to $500 should provide the flexibility for funding last minute expenditures such as meeting refreshments and office supplies, as well as for Neighborhood Council members reimbursements. Due to the complexity and time-length of the process, reimbursements to Neighborhood Council board members by means of city check should be done only when no petty cash funds are available.

(Revised: 02/09/06)

What is the procedure for reimbursing through Petty Cash?

When the Neighborhood Council receives the receipt(s), it must be marked “PAID” and dated by the treasurer. These receipts must be included in the quarterly reconciliation documentation for petty cash and submitted to the Funding Program.

(Revised: 02/09/06)

Can Neighborhood Council board members reimburse themselves for expenses that occurred prior to getting the commercial prepaid card?

No. Your Neighborhood Council would have to be certified and your funding request would have to be approved before any reimbursable expenses can take place.

(Revised: 02/09/06)

Can Neighborhood Council board member be reimbursed on the basis of photocopied receipts?

City policy is that only original receipts will be accepted as a basis for reimbursement. In those cases when the original receipt is not available or lost, a Missing Receipt Affidavit must be completed and submitted for General Manager’s approval. Photocopies alone can not be accepted.

(Revised: 02/09/06)

Are reimbursements allowed to third parties for payments made on behalf of our Neighborhood Council?

No. While we recognize individuals not on the board of the Neighborhood Council may sincerely want to help the Neighborhood Council with facilitating their purchases, the City can only issue a check to a Neighborhood Council board member.

(Revised: 02/09/06)

Can board members be reimbursed for mileage?

No. Law restricts mileage reimbursement to city employees. Neighborhood Council board members can be reimbursed for gasoline costs based on original receipts and a description of the Neighborhood Council business that necessitated the expense. Gasoline expenses should be approved by the Board and can be included in the budget within an operational expense category. Original receipts for gasoline costs must be retained and submitted with the quarterly audit’s petty cash reconciliation form.

(Rev 2/09/06)

Can board members be reimbursed for local transportation costs?

As with reimbursement for gasoline, local transportation costs can be paid through petty cash. Such expenses can include Metro Rail tickets or transportation to City Hall for meetings and hearings. Transportation expenses should be approved by the Board and can be included in the budget within an operational expense category. It could be called "local transportation expense." Original receipts for gasoline or other local transportation costs must be retained and submitted with the quarterly audit’s petty cash reconciliation form.

(Rev. 2/09/06)

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ROLL-OVER

What happens if we don't spend all our money during the current fiscal year?

The City has approved a special policy for Neighborhood Councils and their funds:

How this works:

(Revised: 02/28/06)

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STAFFING/PERSONNEL

Can we hire our own staff?

Not at the present time. Neighborhood Councils have expressed concerns about liability, harassment charges, retirement, benefits, workers compensation, and a whole host of employment issues. Federal, State, and City rules and requirements regarding employer/employee relationships are extensive. The City is addressing these issues now. As a short term solution, our department has developed a special program for you with the temporary personnel organization PDQ, which has a contract with the City.

(Revised: 02/09/06)

How does the PDQ program work?

Through PDQ you can hire part-time clerical and accounting workers and pay for them with your card. Simply contact Ms. Frankie Fields at PDQ (800-404-0400) to get started.

(Revised: 02/09/06)

What if there is an excellent person in our neighborhood we would like to employ?

If there is someone special in your community who you feel meets your needs and can qualify for one of the PDQ positions, simply have them contact PDQ. They will screen them for the necessary skills, and if qualified, will enroll and assign them to your Neighborhood Council. PDQ will handle all the paperwork and ensure compliance with City, State, and Federal requirements.

(Revised: 02/09/06)

Is there a dollar limit to what we can pay a vendor?

No. However, please know that cumulative payments to a vendor (the total overall amount that has been paid to a vendor) of $20,000 or more must occur within the context of a city approved contract. If the City has an ongoing contractual relationship with a vendor resulting from a request for proposals (RFP), the vendor will be asked to register with one of the existing city approved agencies.

(Revised: 09/11/08)

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TOYS

See OUTREACH ITEMS

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TREASURER

If we have a change in our treasurer position (new elections, resignation, etc.), what do we do?

Along with notifying your Advocate, email the Funding Program of your board’s action to identify a new treasurer. The current commercial prepaid card will be cancelled. The new treasurer will need to receive training provided by the Funding Program staff. Once the new treasurer completes the required funding forms, a new card will be issued.

(Revised: 02/09/06)

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T-SHIRTS

See OUTREACH ITEMS

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UPLOAD

Transfer of funds from your Neighborhood Council’s city account to the commercial prepaid card.

(Revised: 02/09/06)

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